Milky Mist Eyes IPO with Rs 20,000 Crore Valuation to Expand Dairy Empire
Source: The DairyNews
Milky Mist, a prominent player in the Indian dairy sector, is reportedly gearing up for an initial public offering (IPO) with a valuation target of Rs 20,000 crore, according to MoneyControl. This strategic move comes after negotiations with WestBridge Capital did not result in funding, prompting the company to explore public markets to fuel its expansion plans.
Founded in 1985 as a milk trading entity, Milky Mist catapulted to fame with its paneer production starting in 1994. Since then, the Erode-based company has diversified its product line to include a variety of value-added dairy products such as curd, butter, cheese, yogurt, and more recently, ice cream and chocolates. These expansions are part of Milky Mist’s strategy to compete more aggressively with industry giants like Amul.
The IPO buzz follows after a valuation of Rs 6,000 crore by WestBridge last year, but Milky Mist is aiming for a much higher valuation to support its ambitious growth plans in new markets and product segments. The company has been engaging with top Indian investment and merchant bankers, including Kotak, HDFC, Nuvama, 360 One, and Axis, to facilitate its journey to the stock market.
Milky Mist's growth trajectory is evident in its financial performance, with the company reporting a significant revenue increase to Rs 1,437 crore in FY 2023, up 42% from Rs 1,015 crore in FY22. Despite a slight drop in profit in FY23 to Rs 28 crore, the company demonstrated a strong recovery with a projected topline of Rs 1,950 crore and a profit of Rs 50 crore for the year ending March 31, 2024.
The leadership team, including founder T Sathish Kumar, a school dropout who has been instrumental in the company's rise, his wife Anitha Sathish Kumar, and CEO K Rathnam, formerly of Amul Dairy, are set to steer Milky Mist through this critical phase.
As Milky Mist prepares for its IPO, the move is seen as a significant step towards scaling operations and enhancing its presence across the Indian dairy market. This transition from private capital attempts to a public offering marks a pivotal moment for the company, poised to capitalize on the growing demand for dairy and dairy-alternative products nationwide.
The IPO buzz follows after a valuation of Rs 6,000 crore by WestBridge last year, but Milky Mist is aiming for a much higher valuation to support its ambitious growth plans in new markets and product segments. The company has been engaging with top Indian investment and merchant bankers, including Kotak, HDFC, Nuvama, 360 One, and Axis, to facilitate its journey to the stock market.
Milky Mist's growth trajectory is evident in its financial performance, with the company reporting a significant revenue increase to Rs 1,437 crore in FY 2023, up 42% from Rs 1,015 crore in FY22. Despite a slight drop in profit in FY23 to Rs 28 crore, the company demonstrated a strong recovery with a projected topline of Rs 1,950 crore and a profit of Rs 50 crore for the year ending March 31, 2024.
The leadership team, including founder T Sathish Kumar, a school dropout who has been instrumental in the company's rise, his wife Anitha Sathish Kumar, and CEO K Rathnam, formerly of Amul Dairy, are set to steer Milky Mist through this critical phase.
As Milky Mist prepares for its IPO, the move is seen as a significant step towards scaling operations and enhancing its presence across the Indian dairy market. This transition from private capital attempts to a public offering marks a pivotal moment for the company, poised to capitalize on the growing demand for dairy and dairy-alternative products nationwide.
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